Low Oil Prices Could Help Spur Fossil Fuel Divestment
Falling oil prices could help build momentum toward fossil fuel divestment, analysts and activists told InsideClimate News this week.
“By themselves, the lower oil prices aren’t likely to convince institutions to divest from fossil fuels, especially since price swings are common in oil markets,” Douglass says. But 350.org Communications Director Jamie Henn said the price volatility “could help the cause by casting doubt on the investment case for keeping them,” she writes.
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“Looking at the forward curve, oil is stuck at $80 for the next five years, and that is more scary than the volatility,” said Oppenheimer & Co. Senior Analyst Fadel Gheit. “There’s definitely going to be less money flowing into [oil stocks] than we’ve seen in the last couple years,” said Senior Oil Analyst Phil Flynn of the Price Futures Group.